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Business Ethics

The document discusses the concepts of ethics and business ethics. It covers topics like the theories of ethics, principles of business ethics, factors influencing business ethics, importance of business ethics, and arguments in favor and against business ethics. It also discusses the relationship between globalization and business ethics.

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Karthik
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21 views

Business Ethics

The document discusses the concepts of ethics and business ethics. It covers topics like the theories of ethics, principles of business ethics, factors influencing business ethics, importance of business ethics, and arguments in favor and against business ethics. It also discusses the relationship between globalization and business ethics.

Uploaded by

Karthik
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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MODULE II

(BUSINESS ETHICS)
Ethics
According to Peter FDrucker, "Ethics deals with the right actions of
individuals."
Features of ethics
1. It deals with human beings.
2. It is a social science.
3. It isabout what is right and what is wrong.
4. It serve and guard business interest.
Branches of ethics
1. Metaethics- It is the study of meaning of ethics.
2. Normnative ethics - It is the study of moral duties, rules within its social
Context.

3.Applied ethics -It is the application of ethical principles.


4. Moral ethics It is the study of human behaviour, beliefs, etc.
Personal ethics
It refers to ethics that person identifies with inrespect to people and situations
that they deal with in everyday life.
Professional ethics
It refers to ethics that a person must adhere in dealing their professional life.
Theories of ethics
Teleological theory
This theories are concerned with the consequences of actions which means the basic
standards for our actions being morally right or wrong.
Forms ofteleological theories
1. Ethical egoism
The theory that the morality right action is the one that produces the most favourable
balance of good over evil for oneself.
2. Utilitarianism

The right action is that which produces the greatest happiness for the greatest number.
3. Eudaimonism

This theory states that an action is good. It results in fulfilment of goals along with welfare of
human being.
Types of Teleological theories
1. Theory of utilitarianism
This theory states the right action is that which produces the greatest
happiness for the greatest number.
2.Theory of virtue
The virtue ethics approach emphasize the virtuous character of individuals who
makes the choices. It is the specific character traits.
3.Theory of justice and fairness
Justice as fairness is Rawls theory of justice for a liberal society. The aim of a
theoryof justice is to propose principles to guide the politicaland social
institution in such a way that each individual receives a fair share of social
benefits and burdens.
Deontological theory
This theory asserts that the rightness of actions is determined partly or entirely
by their intrinsic value.
It includes
a) Duty theory
b) Right theory
c) Kantian theoryof duty based ethics.
d) Rossian theory of duty based ethics.
Moral standards
It refers to the norms which have about the type of actions to be morally
acceptable and unacceptable.

Business Ethics
According to Rogene A Buchholz, "Business ethics refers to right or wrong
behaviourin business decisions."
Characteristics of business ethics
1. Discipline
2. It is an art, science and both.
3. Dynamic
4. Ancient concept.
5. Study of goals and means.
6. Universal application.
7. Relating to human aspects.
Scope of business ethics
Ethical problems in functional areas are:
Ethics in finance Ethics in Human Ethics in Ethics in production
resource marketing

Window dressing. Discrimination Misleading Defective products.


issues. advertisement.
Misleading financial Sexual harassment. Black markets. Dangerous products.
analysis.
Fake Occupational safety Grey markets. Problems arising
reimbursements. and health. Out of new
technologies.
Inside trading. Affirmative action. Manipulation of Environmental
supply. issues.
Bribery and Price
kickbacks. discrimination.
Principles of business ethics
1.Sacredness means and ends.
2. Not to do any evil.
3. Promise keeping.
4. Cooperation with others.
5.Publicity.
6. Equivalent price.
7.Service motto.
8. Universal value.
Factors influencing business ethics
1. Personal code of ethics.

2. Government rules and regulations.


3. Ethical code of the company.
4. Social pressures.
5. Ethical climate of the industry.
Importance of business ethics
1. Increased goodwill.
2. Helps in professionalism of management.
3. Release from tension.

4. Perpetual succession.
5. Management credibility.
6. Helps in decisionmaking.
7. Helps in face challenges.
Arguments in favour and against business ethics

Arguments in favour of ethics Arguments against ethics


Ethics applies toall human Profit will ensure maximum
activities. social benefit, so no need for
business ethics.
Business cannot survive Ethical company cannot be
without ethics. Competitive and viable.
Ethics is consistent with profit Profit maximisation ensure the
seeking. efficient use of society's
resources.
Business ethics enhance Business already has enough
business performance power.
Business ethics promotes It creates conflict between
personal morality. profitability and ethics.
Globalisation
It refers to integration of economies and societies all over the world.
Globalisation and business ethics
Globalisation refers to integration of economies and societies allover the world.
Business transactions in different countries in different languages and different cultures
force companies to revisit ethical principles.
Some of the ethical issues faced by the countries are
a) Discrimination of women.
b)Unfair treatment of workers.
c) Unfair treatment of opposite sex.
d) Language barriers.

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